Reorg Blog

After completing its IPO in June 2020, the AZEK Company debt covenants and capital structure have become more complicated. The company’s gross profit increased 23.3% year over year at the end of Q2 2021 and during Q2, AZEK amended both its term loan and ABL facility to decrease pricing. Their springing financial covenants show that they must maintain a fixed charge coverage ratio of at least 1x, plus their debt and lien capacity shows that permissions from their term loans, ABL, and their unsecured debt are making an impact on the company’s leverage ratios.  To read our Americas Covenants team's...

As the AS Adventure restructuring process continues hedge funds are starting to look at the company as the next big equity play. When the pandemic hit, the Benelux-based outdoor sports clothing and equipment retailer was fearful for their liquidity, but their restructuring process has been fruitful, making the restructured loans interesting for investors. The company's June ‘21 recurring EBITDA is up more than 60% when compared to their levels in June ‘19 and their base-case implied equity value is estimated at €210M with LTV of 49%. As part of the AS Adventure restructuring, 50% of the company’s equity was stapled...

Analyzing the JBF Industries debt, our Asia Core Credit team provided an update on the bid process for the company's NPLs. Under the Swiss challenge method CFM ARC has been announced as the successful bidder. Initiated by BOB Capital Markets Ltd., a process advisor appointed by a Bank of Baroda-led consortium of lenders, the Swiss challenge auction showed no competing bids for the NPLs and Reliance Industries is backing an all-cash offer for the JBF Industries debt. There were a few options for CFM based on the JBF recovery probability as well as their competing bids, but since there were no competing bids the NPLs will...

The ever-growing subscriber base for Reorg in the Americas has long enjoyed premium content, including our coverage of legal and financial analysis as well as reporting of performing, stressed and distressed credits. Part of our “secret sauce” is Reorg’s trifecta approach, which combines experienced reporting with the expertise of seasoned financial analysts and lawyers. This results in more than the sum of its parts, as it provides customers with an unmatched holistic perspective. In recent months, the Americas team has been busy covering the litigation, regulatory and chapter 11 restructuring spaces. Chapter 11 filing frequency in the beginning of the...

Analyzing the Intralot debt and their 2024 €500 million 5.25% senior notes, our EMEA Covenants team discusses the Northlight and Bardin Hill entities who met on Monday, August 2, 2021 in front of a New York Court in order to challenge the exchange on the company's debt that has been proposed. The noteholders claim that the 2021 debt exchange violates terms of the 2024 notes and are calling the Intralot debt exchange a ‘Sweetheart Deal’. Reorg’s review of the 2024 notes indenture covenants, published in January by EMEA Covenants, highlighted that the proposed transaction could face litigation. Reorg analyzed the group’s ability to circumvent 2024 noteholder opposition...

When Reorg first broke news in April 2020 on Hin Leong Trading, we had no idea the extent of what we were about to cover. Hin Leong had hired Rajah & Tann and PwC as respective legal and financial advisors and had a debt stack “likely at least $2 billion.” Within five days, a routine restructuring story had tipped upside down. Reorg obtained affidavits showing that Hin Leong’s $800 million futures losses were not in its financials, the debt stack had ballooned to $3.85 billion from $1.7 billion in five months, and Ocean Tankers had filed for moratorium protection. Fifteen months on, Reorg continues to break news...